Hedge funds finished up 0.84 per cent in August, with eight out of 10 strategies in “positive territory,” according to the Dow Jones Credit Suisse Hedge Fund Index.
With some $2 billion in total inflows last month, the industry saw overall assets under management lift to approximately $1.76 trillion.
Specifically, the fixed income arbitrage and multi-strategy sectors posted the largest asset inflows on a percentage basis, with inflows in August of 1.05 per cent and 0.68 per cent from July levels respectively.
Event-driven funds also generated positive performance, given “positive developments from specific portfolio holdings against a backdrop of reduced macro-related disturbances”, Credit Suisse and S&P Dow Jones Indices said. Meanwhile, long/short equity funds delivered “another month of positive performance”, as both global and US equity markets saw positive returns.
Last month's hedge fund performance was led by the most cyclical areas of the market (such as technology, consumer discretionary and financials), off the back of pro-growth stimulative measures “seen to be undertaken by policymakers”, the firms also noted.
In related news, the number of hedge fund launches in the second quarter of 2012 represents the lowest quarterly launch total since the final quarter of 2010, as managers prepare for increased reporting requirements and investor demand for institutional infrastructure continues to increase, according to Hedge Fund Research’s Market Microstructure Industry report.